MT 219 Marketing Unit Seven Marketing Channels, Direct Marketing and Integrated Marketing Communications Note: This seminar will be recorded by the instructor.

Review of Unit 6 How did Unit 6 go? Questions or concerns? Instructor suggestions for Unit 7 How is the Final Project coming? Additional questions?

Our Topics for This Week Channel importance, functions, types, and coverage Physical Distribution The Role of Direct Marketing Integrated Marketing Communications (IMC)

Important Definitions Marketing Channel – A group of individuals and organizations directing products from producers to customers Marketing Intermediary – a middleman linking producers to other middlemen or ultimate consumers through contracts or purchase/resale- Includes retailers

Why do we need channels? Channels create utility (What is utility?) time- Available when needed place- Available where you need it possession- Accessible when needed form-Available in the form you want- ie. Bulk-breaking. Channels make exchanges more efficient

Types of Channels Producer - Consumer (no intermediary) Producer - Retailer - Consumer Producer – Wholesaler – Retailer – Consumer Producer-agent/broker – Wholesaler-Retailer - Consumer

Coverage Intensity Intensive Selective Exclusive

Direct Marketing The use of telecommunications and nonpersonal media to introduce products to consumers, who then can purchase them via mail, telephone, or the Internet.

Catalog Marketing A type of marketing in which an organization provides a catalog from which customers place orders by mail, telephone, or Internet. -J.C. Penney -The Sharper Image -Victoria’s Secret Are the online sites that sell products also catalogs?

Telemarketing The performance of marketing-related activities by telephone Useful for sales lead generation, raising funds, and gathering marketing data. Outbound telemarketing Consumer Rights and privacy issues

Online Retailing Retailing that makes products available to buyers through computer connections Growing in popularity Security remains an issue

Integrated Marketing Communications Assuring consistent messages through the coordination of promotional efforts The objective is to generate maximum informational and persuasive impact Generally, all four of the promotional mix are used- advertising, personal selling, sales promotion and publicity

The Role of Promotion Communication to build and maintain relationships by informing and persuading one or more audiences (target segments) This should be a coordinated effort that offers synergy between the components

The Promotion Mix Personal Selling Public Relations/Publicity Sales Promotion Advertising

The Communication Process Source Coded Message Medium of Transmission Decoded Message Receiver Noise- Reduce as much as possible Feedback- Make sure you listen to customers and valued links in distribution chain

Promotion Objectives Create Awareness Stimulate Demand -Primary -Selective Encourage Trial Identify Prospects Retain Loyal Customers Facilitate Reseller Support Combat Competitive Promotional Efforts Reduce Sales Fluctuations Think RIP- Remind, inform and persuade

Any Questions? Thank you for attending! See you next week! Instructor will post the link to the recording of tonight’s seminar in the course Announcements.